Smoky Mountain Corporation makes two types of hiking bootsthe Xtreme and the Pathfinder. Data concerning these two product lines appear below:

The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below:

Required:

1. Compute the product margins for the Xtreme and the Pathfinder products under the companys traditional costing system.

2. The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools (the Other cost pool includes organization-sustaining costs and idle capacity costs):

Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system.

3. Prepare a quantitative comparison of the traditional and activity-based cost assignments.

Smoky Mountain Corporation makes two types of hlking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: xtreme Pathfinder selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales $ 126.ee $63.2e $11.7e $ 91.8e $51.ee $9.ee 1.3 DLHs 21,8e units 1.e DLHs 75,8e units The company has a traditional costing system In which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below Estimated total manufacturing overhead Estimated total direct labor-hours $ 2,25e,680 182,398 DLHs Required 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. 2. The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools (the Other cost pool Includes organization-sustalning costs and ldle capacity costs): Estimated Expected Activity Activities and Activity Heasures Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) other Overhead Cost xtreme Pathfinder Total $767,25e 722,0ee 678,99e 91,35e $ 2,25e,608 182,388 380 27,3 75,9ee 178 21e NA NA NA Total manufacturing overhead cost Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. 3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. Complete this question by entering your answers in the tabs below Required 1Required 2Required 3 Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Total Xtreme Pathfinder Product margin Complete this question by entering your answers in the tabs below Required 1Required 2Required 3 Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system. (Round your intermediate calculations to 2 decimal places.) Total Xtreme Pathfinder Product margin Complete this question by entering your answers in the tabs below Required 1Required 2Required 3 Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and "Percentage answers to 1 decimal place.) Total Xtreme Pathfinder %of %of Amount Total Amount Total Amount Traditional Cost System Total cost assigned to products Total Xtreme Pathfinder %of %of Total Amount Amount Total Amount Activity-Based Costing System Direct costs Indirect costs Total cost assigned to products Prev 2of3 Next >